Market Trends of Taiwan Data Center Rack Industry
IT & Telecom Segment expected to hold the major share.
- Cloud and telecom are anticipated to contribute the largest market shares among end-user industries. Due to the increasing data generation, which drives the demand for quicker processing and effective servers, the cloud segment generates significant revenue. Numerous cloud service providers, including Cadence, Google, Siemens, Azure, AWS, and Synopsys, joined forces with TSMC to form a cloud alliance. Other big corporations also intend to enter the Taiwanese cloud industry in the future.
- As Taiwan develops into a regional hub for many enterprises, they are investing in cloud computing, thus increasing the demand for local data centers. The government is encouraging Taiwanese businesses to go digital. It is also dedicated to creating a cloud-based smart digital blueprint for local partners and connecting top-tier creative technologies for a variety of industries.
- outlining intentions to build its first cloud data center area in Taiwan and make large investments in local talent and development with the aim of supplying over 200,000 Taiwanese with digital skills by 2024.
- With an increase in smartphone users in Taiwan, the demand for telecom services is expected to grow. The Taiwanese electronics market has expanded due to the growing semiconductor sector. Taiwan currently produces close to 21% of the world's semiconductors. Over the past few decades, Taiwan has dramatically improved its semiconductor output, becoming a prominent participant in the sector.
- The use of digital consumer products such as smartphones and the data generated via them may allow telecom companies to securely manage and store large volumes of data and scale up the storage capacity as per their requirements. Such instances in the market create more demand for data center manufacturers in the coming years.
Understand The Key Trends Shaping This Market
Download PDF
Full Rack is Expected to Grow Significantly
- In Taiwan, due to growing space scarcity between various companies, the full rack has a majority of the market share. In order to cope with increasing rack capacity due to the rapid growth of mobile broadband, e-commerce, and the increase in Big Data Analytics combined with cloud computing, it is necessary to build a fully rack-equipped data center.
- Due to widespread internet and smartphone usage, the number of online shoppers in the area is steadily growing. The country's well-developed communications infrastructure and transportation network are also encouraging online buyers and sellers to use online channels. E-commerce revenue has been rising over the past few years as more people shop online.
- At first, there was a limited focus on rack space in data centers; only size and cost were taken into account during deployment. Nevertheless, there is an opportunity for increased use of rack space in the data center as more and more users from different sectors, such as online banking, telecommunications, media and entertainment, and others, are adopting applications with higher density.
- Further, Companies increasingly rely on data centers for efficient management of their databases and storage, as they generate significant amounts of data every day. The main driving factor for data center rack usage is, therefore, the increased deployment of fully configured data centers. Also, the growth of the market is being influenced by the growing demand for IT services and investments made by large companies and by the local government.
- The expansion of hyperscale data centers is projected to accelerate starting from the pandemic, as the COVID-19 pandemic pushed enterprises toward digital transformation, owing to an increase in remote working calls and the requirement for rapid mobilization of cloud computing to meet increased data demand. Larger businesses are looking to expand their data centers to ensure the stability and reliability of data services as the application of 5G, the Internet of Things, and artificial intelligence generate the demand for computing power. Taiwan is concentrating on taking the lead over global peers in data center construction. Such instances in the market are expected to create more demand for full-rack units in the coming years.
